‘Food and housing are hitting young people hard in the market’: a growing phenomenon where it is becoming increasingly difficult for young people to make ends meet financially while inflation continues to rise.
For Sylvain Charlebois, specialist in agri-food industry at Dalhousie University, this is an increasingly noticeable phenomenon.
When July 1st comes, the housing situation for young people is not easy. According to him, the only solution is to move to find a reasonable price, or even share with roommates.
Grocery shopping is no longer a habit for this clientele and they prefer to resort to fast food to save money. “They compromise on nutrition because it costs a lot more to maintain the quality of life,” explains Mr Charlebois. However, the phenomenon of reduflation is well known to consumers as costs are increasing but portion sizes are decreasing.
The solutions to save on grocery shopping?
The solutions are simple: “We need to know the options that are available to us. There are more options than we think,” he notes.
One way to save would be to go to public or independent markets, places where groceries are much cheaper. “The spread between prices in wholesale markets and the public market has shrunk in two to three years with inflation,” explains the expert.
Another way to save is by avoiding food waste. Eating leftovers should become a habit. “Don’t forget them, consume them! You have to get rid of the leftovers, because it’s still about money,” adds Sylvain Charlebois.
Accommodation, at what price?
At the age of 23, becoming a homeowner was impossible for a married couple, so they decided to buy a mobile home in Laval. A concrete solution that is much more affordable for them.
“It’s a good solution, but the fact remains that the market isn’t affordable enough for single people. “It’s better to buy two,” complains young woman Mélodie Boivin.
For the President of the Mouvement Desjardins, Guy Cormier, this situation is a perfect example of a couple who cannot afford to buy a property given the current real estate crisis.
“Buying a property doesn’t work like it used to, young people have to postpone the purchase for 5 to 10 years. It is an inequality between generations, all generations must stand by our youth,” he explains.
This is the first time in history that such a large generational transfer is valued at $3,600 billion.
Time is the key to saving. Saving early is important to build wealth. “We have to listen to young people. They are the ones who must face the challenges of the next 40 years. After that, we have to support them,” he adds.
The mobile home, more advantageous?
With interest rates rising, buying a motor home is becoming increasingly popular.
“People have no choice, we go for the low-end variant. Buying a property is very difficult, especially when you’re alone,” comments Stéphane Bruyère, Mortgage Architects’ mortgage broker.
When buying a mobile home, it is important to find out about the property, whether you own it or not.
“In some places, like the Quebec region or Montreal, the land is leased. So we have to pay $150 to $250 for the lot in addition to buying the mobile home,” he says.
For Mr. Bruyère, the mobile home would not be the best solution, it would be a smaller house. “The challenge is that the older she gets, the more lenders will cut mortgage payments. This would increase the monthly mortgage payment,” explains the agent.